Functions of Business Law
Enforceable business practices referred to as business law have various functions with respect to determining how businesses operate. Besides offering distinction between ethical and unethical practices, business law helps to resolve conflicts and to direct the course of business operations. One of the key functions associated with business law is to enhance predictability, stability and continuity in business operations through ensuring that people understand the implications of various actions in business as well as how to seek redress in case of certain occurrences.
Moreover, it initiates and enhances responsible behavior especially for manufacturing companies. In addition to this, business law helps in problem solving through the provision of conflict resolution strategies. Through business law, businesses are made to respect the rights of consumers and the public and maintenance of relationship between various business entities.
The political, social and economic systems are all made stable through the application of business law. The law provides balances and checks for business practice which make the operation of businesses stable and orderly (Goldman & Sigismond, 2011). Business law further helps to maintain strong business environments. Through providing guidelines on the relationships between businesses and consumers as well as between business and suppliers, business law distinguishes between ethical and unethical practices in business (Cross, 2011). Individuals are protected from exploitation by companies. Properties are also protected by business law through imposition of fines and punishments for violations.
In conclusion, business law is an integral part of business operations as it performs various functions, resolution of disputes between employers and employees through recognition of trade unions, and resolution of disputes arising between manufacturing companies and consumers are all functions that would not be achieved conclusively without business law (U.S Supreme Court, 1992). As such, it brings sanity to the business environment.
References
U.S Supreme Court (1992). Cipollone v. Liggett Group Inc. Retrieved on 25th February 2013 from http://lw2.umkc.edu/faculty/ projects/ftrial/conlaw/cipollone.html
Cross, F. et al (2012). The Legal Environment of Business: Text and Cases: ethical, regulatory, global and corporate issues. Mason, OH: South-Western Cengage Learning.
Goldman, A. and Sigismond, W. (2011). Business Law: Principles and Practices. Mason, OH: South Western Cengage Learning.
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